KPN's Rocky Rights Issue

By

Renée Schultes

April 25, 2013 2:22 p.m. ET

Two steps forward, one kick up the backside. Dutch telecommunications group KPN has launched a €3 billion ($3.9 billion) capital raising, equivalent to 80% of its current market value. Investors are being offered the right to buy two new shares at €1.06 a share for each existing share they own, a 62% discount to Wednesday's closing share price. But investors voted with their feet: The shares, which had already fallen 32% since KPN said it planned to raise capital in February, fell another 7% Thursday. Shareholders could be in for...